Downtown Association slates tax incentive workshop

The first of January is quickly approaching, and the Colfax Downtown Association wants to make sure businesses here are able to get a share of tax credit incentives available through the statewide Main Street program. Colfax was designated as a Main Street community one year ago.

“We have all of our stuff prepared now,” said Colfax Unified Executive Director Valoree Gregory.

The Main Street program offers tax credit incentives totaling $1.5 million statewide, and Colfax is eligible for up to $133,000 of that money if businesses apply for it. Last year, when Colfax was new to the program, businesses here missed out on the incentives because they were all allocated in other communities before businesses could apply. it is first come, first served.

“We have to get in the door right away,” said Gregory. “There’s 32 communities trying to get this money.”

The tax credit incentive is available through the Department of Revenue. Businesses can designate their business and operation (B&O) tax payments to be pledged to the Downtown Association.

“Businesses send their tax money through the Department of Revenue, and the money will actually come back to the Downtown Association,” said Gregory. “They’re going to pay their taxes anyway, but that’s one of the greatest things about being apart Main Street program is that the taxes can come back.”

The B&O taxes, when pledged this way, go to the statewide Main Street program through the Department of Revenue and then are filtered back to the indicated community.

Businesses do not receive the credit themselves but are eligible to receive a tax credit for Colfax of up to 75 percent, meaning if $1,000 is paid in taxes, up to $750 of that can be pledged back to Colfax.

“It’s not credited to the business, but they get to use it as a tax write off because we’re also a nonprofit,” explained Gregory. “Businesses can also say it’s a donation, so they can write it off as a donation the next year.”

Applications can be turned in starting Jan. 1, and Gregory wants to be able to help all the businesses be ready to submit that day.

The Downtown Association has slated a Colfax tax incentive workshop for next week to walk businesses through the process and answer questions relating to how the tax pledging works.

The program will be Friday, Dec. 9, at 10 a.m. at the McGregor Training Center on Airport Road. The location was chosen because of the access to computers, so applications can be started there.

“You can do it on January the first,” said Gregory. “You can log in and get your stuff ready to go. We’ll do it step-by-step at McGregor’s. We’re trying to get as many businesses as possible.”

Gregory said she is hoping for this year to be at least a start for Colfax as far as the incentives go.

“If we just get a few signed up this year, then next year we can even be better,” she said. “We’ll just see if we can get in this year.”

Gregory said she thinks it would be possible for Colfax businesses to reach the maximum amount of $133,000, but she will be happy to have the foot in the door.

“That’s our goal someday, but we just want to get people to pledge right now,” she said.

The tax credits will be able to be used by the Downtown Association to the benefit of businesses here, such as with repairs to store fronts or to planning events that bring people to town.

“They can pledge it toward us, and it runs back to us,” said Gregory. “Most of the downtown businesses are all for it. We just want to educate them and help out our community at the same time.”

To sign up for the workshop or learn more, contact Gregory at [email protected].